Orville Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of Orville Company are as follows: Carrying ValueFair ValueCash $20,000 $20,000 Accounts Receivable 45,000 30,000 Inventory 60,000 35,000 Land 75,000 70,000 Building (net) 180,000 100,000 Equipment (net) 170,000 80,000 Total $550,000 $335,000 Debts of Orville are as follows: Accounts Payable$60,000 Wages Payable (all have priority) 10,000 Taxes Payable 10,000 Notes Payable (secured by receivables and inventory) 120,000 Interest on Notes Payable 6,000 Bonds Payable (secured by land and building) 150,000 Interest on Bonds
Payable 7,000 Total$363,000 Based on the preceding information, what estimated amount will be available for general unsecured creditors upon liquidation?
A. $28,000
B. $121,000
C. $113,000
D. $93,000
Answer: D
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